Weekly Technical analysis SP500 (CFD) from 03/23/15 to 27/03/15.

By | March 23, 2015

Last week for SP500 (CFD) ended the growth of quotations, and accordingly continuation of reduction that was conceived a week earlier and had hoped traders did not happen. The first half of trading five days index actively growing, broke the resistance level of 2092.7 and consolidate above it. In the second half, after a slight pullback, he continued his upward movement and test the next resistance level of 2116.8 points. The main driver of this growth was the decision of the US Federal Reserve’s monetary policy, from which it became known that the rate remains unchanged 0.25%. A comment Janet Yellen, in which she urged patience, gave the markets a signal that expect an early rate hike is not necessary.

This week will be a series of important reports on the growth rate of the leading economies in the world, and together with the data on inflation, they will be able to show us the prospects for further growth as the global economy in general and the situation in a particular region. Traders today are interested in whether the continued growth of US indexes and update them, new highs, or is it to prepare for the full correction in the near future. From a technical point of view, if the price was fixed above the level of 2116.8 points, the next test will make the level of resistance 2130.0. If the price goes down and breaks through the support of 2092.7 points, a further reduction will be aimed at the price level of 2063.6 points and below. It is worth noting that only the breakdown level of support 2043.2 will be a serious claim at the beginning of the corrective movement on the index SP500.

Trend indicators MA (moving average) are under price and support growth. Oscillators in different directions: RSI stood in the neutral zone and looks down, and MACD is a plus zero zone, and a histogram increases.


Remarks and prediction: in the case of continued growth, we expect the movement to the resistance level 2116.8 points. If there is a further decline, the price will go to the level of 2092.7.

Trading guidelines (H4):
2 resistance (resistance): 2130.0
1 resistance (resistance): 2116.8

1 support (support): 2092.7
2 support (support): 2063.6

The tactics of trade: the breakdown of the level of 2116.8, opening the deal to purchase a take profit at 2130.0, and stop loss at the level of 2105.0 points. If the price goes down, then you can open a deal to sell below the level of 2092.7 to take profit at the level of 2063.6 points and the presence of stop loss at 2100.0.

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